JPG and PNG breaks filefield display with private file system

Using private file system, with a filefield that has jpg file allowed, I'm having problems rendering the files. The pages that render the node containing the file breaks down (WPOD). It only renders this html:

<div class="field field-name-field-document-file field-type-file field-label-hidden clearfix">
    <div class="field-items">
          <div class="field-item even"><div id="file-25" class="file file-image file-image-png contextual-links-region">


  <div class="content">
      </div>

I'm also using File Entity module, but I haven't been able to track down if it's related to core files or that module. There is another similar (but not identical) core issue here: #1200020: Private File System with Filefield - Uploading jpg results in "Access denied. You may need to login below or register to access"

Other allowed filetypes such as pdf or word documents behaves normally. The filefield is displayed using "rendered file".